[The Star] Daibochi Q2 revenue hits record high
KUALA LUMPUR: Flexible packaging manufacturer Daibochi Bhd saw its revenue for the second quarter ended June 30, 2018, hit a record high of RM106.4mil, growing 22.5% from a year ago.
The group attributed the record quarterly performance to its Malaysia plant seeing increased shipments to MNC customers in the domestic market and export markets.
“This was further enhanced by new contributions from the Myanmar plant which commenced operations on July 1, 2017,” the group said in a statement.
The Myanmar plant recorded revenue of RM7.9mil during the quarter, making up 7.4% of group revenue.
The group’s net profit for the period, however, slipped 7.8% to RM4.7mil on the back of foreign currency exchange losses of RM2.2mil, largely due to USD-denominated transactions and a term loan used to finance its investment in Daibochi Myanmar.
For the six-month period ended June 30, 2018, group revenue rose 16.7% to RM211.1mil, while profit before tax increased 5.2% to RM14.8mil.
Daibochi MD Thomas Lim said the group intended to continue stamping a firmer mark in export markets, as well as support the expanding requirements of MNCs.
“Additionally, we anticipate our Myanmar plant to achieve stronger performance in the fourth quarter of 2018 onwards, with quarterly revenue expected to rise more than 30% to exceed RM10mil, driven by order fulfilment and potential new contracts,” he said
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